HDFC Bank’s big retention problem

With junior-level employees leaving in droves, the bank faces a challenge to its plan to double its branch footprint in five years.

HDFC Bank plans to double its footprint in the next five years, adding 1,500 to 2,000 branches every year. This, it hopes, will help mobilize more deposits and aid customer acquisition.

With assets worth Rs 21.1 lakh crore—almost the same size as India’s total tax mop-up (direct and indirect) in the financial year 2021-22—and a capital adequacy ratio of 18.1%, it’s a financial giant. So it may seem that the stage is perfectly set for India’s largest private sector bank to expand its physical footprint. 

Until you realize that there is a key ingredient missing—a stable workforce.

In 2021-22, 36,113 …


Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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